{"id":55494,"date":"2020-12-22T21:45:22","date_gmt":"2020-12-23T05:45:22","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=55494"},"modified":"2020-12-23T13:07:56","modified_gmt":"2020-12-23T21:07:56","slug":"t2108-update-close-call-for-extended-overbought-period","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2020\/12\/22\/t2108-update-close-call-for-extended-overbought-period\/","title":{"rendered":"A Close Call for Trading In the Extended Overbought Stock Market &#8211; Above the 40 (December 22, 2020)"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\"><strong>Stock Market Commentary<\/strong><\/h2>\n\n\n\n<p>The U.S. stock market quickly rebounded from <a href=\"https:\/\/drduru.com\/onetwentytwo\/2020\/12\/21\/more-virulent-strain-threatens-to-dampen-market-cheer-new-us-pandemic-relief-measures\/\">the weekend&#8217;s jolt of pandemic news from Europe<\/a>. The initial bout of selling created a close call for the extended overbought period. The comeback of buying picked the stock market off the threshold for overbought conditions but a sustained survival remains unsettled. While buyers convincingly returned to tech stocks, the S&amp;P 500 (SPY) is trading with shades of uncertainty.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Stock Market Indices<\/strong><\/h3>\n\n\n\n<p>The S&amp;P 500 (SPY) punctured uptrending support at its 20-day moving average (DMA) and lost as much as 2.0% at the lows. A rebound preserved support and secured a 0.4% loss on the day. Sellers returned today to add a 0.2% loss. The S&amp;P 500 continues to levitate above 20DMA support, still scraping below the recent all-time high.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.tradingview.com\/x\/IcEGGLEJ\/\"><img decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/IcEGGLEJ\/\" alt=\"The S&amp;P 500 (SPY) gained 0.9% and stretched for an all-time high.\"\/><\/a><figcaption><strong><em>The <a href=\"https:\/\/www.tradingview.com\/x\/IcEGGLEJ\/\" target=\"_blank\" rel=\"noreferrer noopener\">S&amp;P 500 (SPY)<\/a> is clinging to 20DMA support.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<p>The NASDAQ (COMPQX) sprinted ahead of the S&amp;P 500 again. The tech-laden index essentially recovered all its initial losses on Monday. Today, the NASDAQ pulled off a 0.5% gain and a fresh all-time high.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.tradingview.com\/x\/SW8YtuaX\/\"><img decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/SW8YtuaX\/\" alt=\"The NASDAQ (COMPQX) gained 0.7% to end a week the strung together a series of all-time highs.\"\/><\/a><figcaption><strong><em>The <a href=\"https:\/\/www.tradingview.com\/x\/SW8YtuaX\/\" target=\"_blank\" rel=\"noreferrer noopener\">NASDAQ (COMPQX)<\/a> jumped right back to all-time highs.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<br><script async=\"\" src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\n<ins class=\"adsbygoogle\" style=\"display:block; text-align:center;\" data-ad-layout=\"in-article\" data-ad-format=\"fluid\" data-ad-client=\"ca-pub-1196033822186410\" data-ad-slot=\"3478942445\"><\/ins>\n<script>\n     (adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><br>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Stock Market Volatility<\/strong><\/h3>\n\n\n\n<p>The volatility index (VIX) faded hard from Monday&#8217;s highs and lost another 3.7% today. Monday&#8217;s gap remains intact so the VIX is still flagging residual fear and lingering nervousness. The dichotomy between the VIX and the resurgent NASDAQ is leaving the S&amp;P 500 in the middle and &#8220;undecided.&#8221;<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.tradingview.com\/x\/Rq8Rrl0C\/\"><img decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/Rq8Rrl0C\/\" alt=\"The volatility index (VIX) continues to cling to the 20 threshold.\"\/><\/a><figcaption><strong><em>The <a href=\"https:\/\/www.tradingview.com\/x\/Rq8Rrl0C\/\" target=\"_blank\" rel=\"noreferrer noopener\">volatility index (VIX)<\/a> remains a bit elevated despite a major fade from Monday&#8217;s intraday high.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Short-Term Trading Call: Extended Overbought Conditions<\/strong><\/h3>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"260\" height=\"260\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/04\/AboveThe40_AnimatedLogo.gif\" alt=\"Above the 40 (Animated Logo)\" class=\"wp-image-52522\"\/><figcaption>Above the 40 (Animated Logo)<\/figcaption><\/figure><\/div>\n\n\n\n<ul class=\"wp-block-list\" id=\"block-8746fb62-8c65-4cd8-aa26-5b377e48018f\"><li><strong>AT40<\/strong> = 74.9% of stocks are trading above their respective 40-day moving averages (Day #27 overbought)<\/li><li><strong>AT200<\/strong> = 85.6% of stocks are trading above their respective 200-day moving averages <a rel=\"noreferrer noopener\" href=\"https:\/\/www.tradingview.com\/x\/PS8EDNLZ\/\" target=\"_blank\">TradingView&#8217;s calculation<\/a>).<\/li><li><strong>Short-term Trading Call<\/strong>: neutral<\/li><\/ul>\n\n\n\n<p>Trading this week reminded me why I am keeping the short-term trading call at neutral despite the strong buying power implied by this extended overbought period. <a href=\"https:\/\/drduru.com\/onetwentytwo\/t2108-resource-page\/\">AT40 (T2108)<\/a>, the percentage of stocks trading above their respective 40DMAs, had a close call with the 70% overbought threshold. On Monday, <a href=\"https:\/\/drduru.com\/onetwentytwo\/2020\/12\/21\/more-virulent-strain-threatens-to-dampen-market-cheer-new-us-pandemic-relief-measures\/\">the day&#8217;s opening salvo of selling<\/a> took my favorite indicator right to the edge. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/12\/201222_T2108.png\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/12\/201222_T2108.png\" alt=\"AT40 (T2108) opened the day right on top of the 70% threshold for overbought conditions.\" class=\"wp-image-55496\" width=\"550\" height=\"375\"\/><\/a><figcaption><strong><em>AT40 (T2108) opened the day right on top of the 70% threshold for overbought <\/em><\/strong><em><strong>0<\/strong><\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p>Just as <a href=\"https:\/\/drduru.com\/onetwentytwo\/2020\/12\/21\/the-british-pound-attempts-to-break-quarantine\/\">the contrary mindset worked in the currency markets<\/a>, so too did it work in the equity markets. In a confirmation of bullish interest, buyers stepped right into the breach and sent AT40 higher right into the close. Tuesday&#8217;s setback was also met with immediate buying interest. Still, AT40 has clearly cooled off. I am on alert for the beginning of the end of this extended overbought period.<\/p>\n\n\n\n<p>The stock market is on day #27 of overbought conditions. The S&amp;P 500 has 2.8% in gains since <a href=\"https:\/\/drduru.com\/onetwentytwo\/2020\/11\/14\/t2108-update-overbought-trading-resumes-fresh-momentum-reopen-trade\/\">overbought trading resumed on November 13th<\/a>. The index is stuck in a near 3-week range of 2-3% overbought gains.  The historical chart below shows that 2.8% is a little lower than the expected gains for the S&amp;P 500 if the overbought period ended on the 27th day (the green trend line represents the &#8220;expected&#8221; relationship). This slight underperformance suggests the stock market has one more rally left in it before the overbought period ends. Either way, I am more prepared now to flip (cautiously) bearish when the overbought period ends.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/12\/201223_SP500-Performance-Overbought.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"660\" height=\"446\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/12\/201223_SP500-Performance-Overbought.jpg\" alt=\"Performance of the S&amp;P 500 (SPY) After An Overbought Period Ends\" class=\"wp-image-55506\"\/><\/a><figcaption><strong><em>Performance of the S&amp;P 500 (SPY) After An Overbought Period Ends<\/em><\/strong><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Stock Chart Reviews &#8211; Below the 50DMA<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Best Buy<\/strong> (BBY)<\/h3>\n\n\n\n<p>Electronics retailer Best Buy (BBY) finally stopped selling off. A two week trading range is now in place. The downtrending 20DMA presents the first test to this stabilization. I am looking to next trade BBY in the direction of the breakout from this short-term trading range.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.tradingview.com\/x\/FKp2vYwe\/\"><img decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/FKp2vYwe\/\" alt=\"Nikola Corp (NKLA) is clinging to support at the September and November lows.\"\/><\/a><figcaption><strong><em><a href=\"https:\/\/www.tradingview.com\/x\/FKp2vYwe\/\" target=\"_blank\" rel=\"noreferrer noopener\">Best Buy (BBY)<\/a> gained 0.8% and is trying to stabilize below a downtrending 20DMA. At the same time, a Bollinger Band (BB) squeeze is starting to form.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Beyond Meat<\/strong> (BYND)<\/h3>\n\n\n\n<p>In <a href=\"https:\/\/twitter.com\/CNBCFastMoney\/status\/1341505716700516352?s=20\" target=\"_blank\" rel=\"noreferrer noopener\">a month full of parabolic moves and highly speculative trades<\/a>, I am surprised to see Beyond Meat (BYND) still stuck in a relative rut. BYND trades exactly where it did 7 months ago. The good news for BYND is that post-earnings selling lasted just one day. The stock is in stabilization mode now.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.tradingview.com\/x\/sdSQghJD\/\"><img decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/sdSQghJD\/\" alt=\"\"\/><\/a><figcaption><strong><em><a href=\"https:\/\/www.tradingview.com\/x\/sdSQghJD\/\">Beyond Meat (BYND)<\/a> has essentially gone nowhere for over 7 months.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Splunk <\/strong>(SPLK)<\/h3>\n\n\n\n<p>The post-earnings recovery for Splunk (SPLK) surged into my upside target. I will look for a new buy if SPLK confirms a 200DMA breakout.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.tradingview.com\/x\/SqeDi0Kf\/\"><img decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/SqeDi0Kf\/\" alt=\"Salesforce.com (CRM) is trying to stabilize after an 8.5% post-earnings loss.\"\/><\/a><figcaption><em style=\"font-weight: bold;\"><a href=\"https:\/\/www.tradingview.com\/x\/SqeDi0Kf\/\" target=\"_blank\" rel=\"noreferrer noopener\">Splunk (SPLK)<\/a><\/em><strong><em style=\"font-weight: bold;\"> <\/em>tested 200DMA resistance<em>.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Stock Chart Reviews &#8211; Above the 50DMA<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Goldman Sachs<\/strong> Group (GS)<\/h3>\n\n\n\n<p>Goldman Sachs Group (GS) benefited from Monday&#8217;s surge in financials. Financials stood above the fray in the stock market as they basked in the glow of <a href=\"https:\/\/drduru.com\/onetwentytwo\/2020\/12\/20\/t2108-update-extended-overbought-rally-moves-into-historic-territory\/\" target=\"_blank\" rel=\"noreferrer noopener\">approval from the Federal Reserve<\/a>. GS jumped 6.1% to a 2 1\/2 year high. Today, GS gave some of those gains back with a 2.7% pullback. I am a buyer on dips from there. Last month&#8217;s breakout looks confirmed with this week&#8217;s breakout.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.tradingview.com\/x\/2d0mTasf\/\"><img decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/7lpQq14B\/\" alt=\"Caterpillar Inc (CAT) jumped 4.3% to hit a new all-time high.\"\/><\/a><figcaption><strong><em><a href=\"https:\/\/www.tradingview.com\/x\/2d0mTasf\/\" target=\"_blank\" rel=\"noreferrer noopener\">Goldman Sachs Group (GS)<\/a> lost 2.7% and reversed all of the previous day&#8217;s post-open gains. <\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><strong>Timkensteel<\/strong><\/strong> (TMST)<\/h3>\n\n\n\n<p>Specialty steel marker Timkensteel (TMST) remains on my radar. Buyers got ahead of themselves sending the stock on a parabolic burst above its upper Bollinger Band (BB) earlier this month. The stock subsequently snowballed into a full reversal. Today TMST is defended 50DMA support. I am a buyer on a higher close from here. If the 50DMA gives way, I will next look for a complete reversal of last month&#8217;s post-earnings breakout.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/www.tradingview.com\/x\/qYQ19Mfi\/\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/qYQ19Mfi\/\" alt=\"The iShares MSCI Brazil Index Fund ETF (EWZ) gained 1.9% for a 9-month high.\" width=\"580\" height=\"384\"\/><\/a><figcaption><strong><em><a href=\"https:\/\/www.tradingview.com\/x\/qYQ19Mfi\/\">Timkensteel (TMST)<\/a> gained 1.9% as it defended 50DMA support.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Target Corporation<\/strong> (TGT)<\/h3>\n\n\n\n<p>Retailer Target Corporation (TGT) enjoyed a 1-week post-earnings rally before topping out. December has been a month of cooling. I am eyeing a test of 50DMA support as an opportunity to buy some speculative call options.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/www.tradingview.com\/x\/L9ImSO6b\/\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/L9ImSO6b\/\" alt=\"In the rumor stage, Slack Technologies Inc (WORK) managed to rally for the bulk of the post-deal gains.\" width=\"580\" height=\"384\"\/><\/a><figcaption><strong><em><a href=\"https:\/\/www.tradingview.com\/x\/L9ImSO6b\/\" target=\"_blank\" rel=\"noreferrer noopener\">Target Corp (TGT) <\/a>is gliding into a test of 50DMA support.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<p>Be careful out there!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Footnotes<\/strong><\/h2>\n\n\n\n<p>&#8220;Above the 40&#8221; (AT40) uses the percentage of stocks trading above their respective 40-day moving averages (DMAs) to measure breadth in he stock market. Breadth indicates the distribution of participation in a rally or sell-off. As a result, AT40 can identify extremes in market sentiment that are likely to reverse. Above the 40 is my alternative name for &#8220;T2108&#8221; which was created by <a aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" href=\"https:\/\/www.worden.com\/CURRENTAFPROMO.aspx?AFCODE=866\" target=\"_blank\">Worden<\/a>. Learn more about T2108 on my <a href=\"https:\/\/drduru.com\/onetwentytwo\/about\/t2108-resource-page\/\">T2108 Resource Page<\/a>. AT200, or T2107, measures the percentage of stocks trading above their respective 200DMAs.<\/p>\n\n\n\n<p><strong>Active AT40 (T2108) periods<\/strong>: Day #50 over 20%, Day #34 above 30%, Day #33 over 40%, Day #32 over 50%, Day #31 over 60%, Day #27 over 70%<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.drduru.com\/money\/charts\/T2108-daily_s.png\"><img decoding=\"async\" src=\"https:\/\/www.drduru.com\/money\/charts\/T2108-daily_s.png\" alt=\"\"\/><\/a><\/figure><\/div>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.drduru.com\/money\/charts\/T2108-weekly_s.png\"><img decoding=\"async\" src=\"https:\/\/www.drduru.com\/money\/charts\/T2108-weekly_s.png\" alt=\"\"\/><\/a><figcaption>Black line: AT40 (T2108) (% measured on the right)<br>Red line: Overbought threshold (70%); Blue line: Oversold threshold (20%). <strong>Source: FreestockCharts<\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.tradingview.com\/x\/JRrTOxyi\/\"><img decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/PS8EDNLZ\/\" alt=\"\"\/><\/a><figcaption><strong><em>Percentage of stocks trading above their respective 200-day moving averages (DMAs) according to <a href=\"https:\/\/www.tradingview.com\/x\/PS8EDNLZ\/\" target=\"_blank\" rel=\"noreferrer noopener\">TradingView.com<\/a><\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<p>Source for charts unless otherwise noted: <a href=\"https:\/\/www.tradingview.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>TradingView.com<\/strong><\/a><\/p>\n\n\n\n<p><strong>Full disclosure<\/strong>: long UVXY<\/p>\n\n\n\n<p><strong>FOLLOW Dr. Duru&#8217;s commentary on financial markets via <a href=\"https:\/\/stocktwits.com\/DrDuru\" target=\"_blank\" rel=\"noreferrer noopener\">StockTwits<\/a>, <a href=\"https:\/\/twitter.com\/DrDuru\" target=\"_blank\" rel=\"noreferrer noopener\">Twitter<\/a>, and even <a href=\"https:\/\/www.instagram.com\/drduru_market_breadth\/\" target=\"_blank\" rel=\"noreferrer noopener\">Instagram<\/a>!<\/strong><\/p>\n\n\n\n<p>*Charting notes: FreeStockCharts stock prices are not adjusted for dividends. TradingView.com charts for currencies use Tokyo time as the start of the forex trading day.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Stock Market Commentary The U.S. stock market quickly rebounded from the weekend&#8217;s jolt of pandemic news from Europe. The initial bout of selling created a close call for the extended overbought period. The comeback of buying picked the stock market off the threshold for overbought conditions but a sustained survival remains unsettled. While buyers convincingly &#8230; <a title=\"A Close Call for Trading In the Extended Overbought Stock Market &#8211; Above the 40 (December 22, 2020)\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2020\/12\/22\/t2108-update-close-call-for-extended-overbought-period\/\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":55496,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[584,199,220,548,1129,219,490,512,338,1311,511,62,982],"tags":[1819,721,720,2371,2274,1955,2395,413,65,1335,1416,362,226,2391,1890,2609,1805,303],"class_list":["post-55494","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bollinger-band","category-commodities","category-earnings","category-financials","category-food-retail","category-high-tech","category-overbought","category-resistance","category-retail","category-software","category-support","category-technical-analysis","category-trading-range","tag-at40","tag-bby","tag-best-buy","tag-beyond-meat","tag-bynd","tag-compqx","tag-goldman-sachs-group","tag-nasdaq","tag-sp-500","tag-splk","tag-splunk","tag-spy","tag-t2108","tag-target-corporation","tag-tgt","tag-timkensteel","tag-tmst","tag-vix"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>A Close Call for Trading In the Extended Overbought Stock Market<\/title>\n<meta name=\"description\" content=\"A gap down to start the week&#039;s trading took trading back to the overbought threshold. Buyers stepped into the close call and held supports.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/drduru.com\/onetwentytwo\/2020\/12\/22\/t2108-update-close-call-for-extended-overbought-period\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Close Call for Trading In the Extended Overbought Stock Market - Above the 40 (December 22, 2020)\" \/>\n<meta property=\"og:description\" content=\"A gap down to start the week&#039;s trading took trading back to the overbought threshold. Buyers stepped into the close call and held supports.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/drduru.com\/onetwentytwo\/2020\/12\/22\/t2108-update-close-call-for-extended-overbought-period\/\" \/>\n<meta property=\"og:site_name\" content=\"ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"article:published_time\" content=\"2020-12-23T05:45:22+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-12-23T21:07:56+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/12\/201222_T2108.png\" \/>\n\t<meta property=\"og:image:width\" content=\"550\" \/>\n\t<meta property=\"og:image:height\" content=\"375\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Dr. Duru\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"A Close Call for Trading In the Extended Overbought Stock Market - Above the 40 (December 22, 2020)\" \/>\n<meta name=\"twitter:description\" content=\"A gap down to start the week&#039;s trading took trading back to the overbought threshold. 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